Auctions for property have a long standing reputation as being a good place to get a bargain home or investment, due to the buildings having been repossessed or the owners needing a quick sale.

However, those taking this route to purchase their next property should be aware that these places are often in need of refurbishment and even major structural work, so these costs must be factored into the highest bid. Most auctions used to take place in London, but in recent years there has been a surge in such sales and now the shrewd investor can find one in almost any locality.

Some research carried out by a national website has found that properties sold through an auction are often sold as 40% less than their market value - although if a bidding war is initiated then the price rise dramatically. The major advantage of using this method of buying is the speed of the process: potential investors need only to register their details with local auctioneers and they will then be sent particulars when places become available. If interested, all that remains is to contact the auction house to arrange a viewing, and the bidding itself - although obviously it is prudent to carry out a survey of the proper in question in advance of the sale date, and investors must already have the finance available.

The Essential Information Group (EIG), who provide investors with news of auctions taking place in the UK have noticed a "terrific increase" in the numbers of properties going to auction in the last few years - due in part perhaps to the surge in internet use - now investors can easily find out particulars of property anywhere in the country.

Before you turn up and make a bid, it is wise to realise the extent to which these properties need work though, serious modernisation could be required before they can be let out. Having said this, it is often only kitchens and bathrooms that are essential refurbishment jobs - the shrewd investor should be able to find something that is priced reasonably, carry out any necessary work and get a good return. Auction sales have risen 132% in the past nine years, and last year sales of this nature accounted for 2% of the market - over 18,000 properties.